Learn the difference between Costing and Account-based COPA
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Discover what to look l ook out for when reconciling CO-PA to the General Ledger
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Learn how to match the Cost-of Sales GL account with its corres!onding CO-PA value field
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"ind out how to re!ost documents in CO-P CO-PA A onl#
$o!ics •
Overview of costing and accounting-based CO-PA
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%ow costing-based CO-PA ties to the General Ledger
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&atching the cost-of-sales GL account to t o CO-PA CO-PA
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Additional CO-P CO-PA A reconciliation issues
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'e!osting documents in CO-PA onl#
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Summar# Start of first section: List the main points in your presentation and insert this slide at the start of each new topic. Move the highlighted box down for each new section. This divides your presentation into easy to follow sections.
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Overview of Controlling Profitabilit# Anal#sis •
Collects 'evenues and Costs from various modules in order to anal#(e !rofitabilit#
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Inherits the characteristics that are associated with those revenues and costs
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)*am!les of Characteristics are Customer+ Product+ 'egion+ Sales!erson+ etc,
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)*cellent tool for anal#sis but not easil# reconcilable with the General Ledger
Costing ased CO-PA
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Grou!s costs and revenues into .alue "ields
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.alue fields are ma!!ed to Conditions+ GL Accounts+ Cost Com!onents and .ariance Categories
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$his was the original model of CO-PA
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/hen !eo!le sa# CO-PA the# are normall# referring to 0Costingased1 CO-PA
Advantages and Disadvantages Advantages •
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S!lits the cost of sales value into its different cost com!onents Can classif# !roduction variances into their different categories etter visibilit# of contribution margin as fi*ed and variable costs can be broken out
Disadvantages •
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Does not show GL Accounts hence not as easil# reconcilable &ore com!licated to set u! as it re2uires ma!!ing of value fields to various ob3ects
Account-ased CO-PA
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4ses Accounts as a basis for re!orting
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All P5L Accounts would need to be created as cost or revenue elements
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Categories of cost and revenue elements are classified according to cost element grou!s
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$his t#!e of CO-PA was introduced because accountants com!lained about not being able to reconcile costing-based CO-PA to the general ledger
Advantages and Disadvantages Advantages •
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Dis!la#ed according to GL Accounts so it is easier to reconcile to the General Ledger As #ou can still re!ort b# characteristics+ it can also be com!ared with Costing based CO-PA re!orts
Disadvantages •
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6ou cannot break out cost of sales into their fi*ed and variable costs 6ou cannot anal#(e variances into their res!ective categories 6ou cannot anal#(e cost of sales according to cost com!onents
Data "lows into CO-PA
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Data "lows into CO-PA 7cont,8 •
"low of Actuals in Profitabilit# Anal#sis •
"low from the Sales and Distribution 7SD8 &odule •
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"low from the "I&& 9 direct !ostings •
General Ledger Posting
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&& Postings
"low from the Product Costing •
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Settlement of Production .ariances to PA
"low from Pro3ect S#stems •
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$ransfer of Cost Com!onents to PA
"low from Cost Ob3ect Controlling •
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"low from illing Document
Settlement of 'esults Anal#sis to PA
$o!ics •
Overview of costing and accounting-based CO-PA
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%ow costing-based CO-PA ties to the General Ledger
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&atching the cost-of-sales GL account to CO-PA
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Additional CO-PA reconciliation issues
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'e!osting documents in CO-PA onl#
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Summar# Start of first section: List the main points in your presentation and insert this slide at the start of each new topic. Move the highlighted box down for each new section. This divides your presentation into easy to follow sections.
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illing Document Postings
Sales Condition is &a!!ed to a .alue "ield
Sales Condition is also ma!!ed to an account ke# and subse2uentl# a GL Account
If a value field is not ma!!ed to a sales condition+ the billing document is not !assed to "I
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"inance Postings •
"inance transactions are assigned to a PA transfer structure
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$his PA transfer structure includes source and target ob3ects
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Source ob3ects are cost elements 7or grou!s8
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$arget ob3ects are value fields
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/hen !osting a "inance document+ click on the Prof,Seg, Arrow and enter the characteristics
Click on !rof.Seg" arrow to enter the characteristics
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Inventor# Postings
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GL Accounts are assigned to relevant inventor# transactions in O6C
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$hese GL Accounts are ma!!ed to value fields in PA transfer structure
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Include GL Accounts in automatic account assignment transaction O:;
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Check the Profitabilit# Segment bo*
Production Settlement
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Settlement Structure for Production is assigned to a PA transfer structure
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PA transfer structure contains various assignments
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$hese assignments have source and target ob3ects
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Source ob3ects are the variance categories
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$he target ob3ects are s!ecific value fields
Pro3ect S#stems Settlement
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'esults anal#sis line IDs are assigned to cost elements
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Settlement Structure for Pro3ects is assigned to a PA transfer structure
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PA transfer structure contains different assignments
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$hese assignments have source and target ob3ects
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Source ob3ects are the !ro3ect s#stems cost elements
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$he target ob3ects are s!ecific value fields
Cost Center Assessments
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Cost Centers 7or grou!s8 are entered as senders in Assessments
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CO-PA Characteristics are designated as receivers
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.alue fields to be !osted to are assigned in these assessments
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Cost Com!onents
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Cost Com!onents are set u! to break out the standard cost into its res!ective elements
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Cost elements are assigned to these cost com!onents
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$hese cost com!onents are assigned to value fields
$o!ics •
Overview of costing and accounting-based CO-PA
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%ow costing-based CO-PA ties to the General Ledger
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&atching the cost-of-sales GL account to CO-PA
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Additional CO-PA reconciliation issues
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'e!osting documents in CO-PA onl#
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Summar# Start of first section: List the main points in your presentation and insert this slide at the start of each new topic. Move the highlighted box down for each new section. This divides your presentation into easy to follow sections.
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$iming difference of Goods Issue
$ransaction
General Ledger
CO-PA
Sales Order
Goods Issue
4!dated 7COS8
illing Document
4!dated 7'evenue8
4!dated 7COS 5 'evenue8
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= CO-PA can be u!dated from sales orders if #ou activate 0$ransfer of Incoming Sales Orders1
Co!#ing Condition .P'S to ?P'S
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6ou can co!# condition .P'S to ?P'S in transaction .@
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Assign this condition to #our !ricing !rocedures 7.@B8
Assigning Condition ?P'S to CO-PA .alue field •
Go to transaction :)I
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Assign Condition ?P'S to the Cost of Sales value field
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6ou can overwrite the ma!!ing of the current cost of sales condition 7which is normall# 0.P'S1 but could be something else8 with condition ?P'S
Assigning Condition to an account :e# •
Create an account ke# 0?P'1 using the menu !ath> Sales and Distribution - asic "unctions - Account AssignmentCosting - 'evenue Account Determination - Define and Assign Account :e#
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Assign this account ke# to the ?P'S condition in the !ricing !rocedure 7transaction .@B8
#ccount key $!%" assigned to condition $!%S 24
Configuring 0Shi!!ed not illed Account1
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Create 0Shi!!ed
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&ake this account an 0O!en Item managed Account1 with the 0Onl# al, in Local Currenc#1 flag checked
Configuring 0Shi!!ed not illed1 Account 7cont,8 Go to transaction O6C+ enter this account under transaction :e# G and Account &odification .AF
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$he cost of sales account would have !reviousl# been configured in this setting, 6ou need to overwrite that account with the 0Shi!!ed not illed Account1 $his wa#+ the 0Shi!!ed not illed1 account will be debited during a Goods Issue transaction
&aking Cost of Sales Account a Cost )lement
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Go to transaction :A@ and enter the cost of sales cost elementE
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)nter a Cost )lement Categor# of 0H 9 Sales Deduction1
Assign Account :e# to GL Accounts •
Go to transaction .:@A and assign the account ke# ?P' to the GL Accounts 0Shi!!ed not illed1 and 0Cost of Goods Sold1
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$his wa#+ when #ou bill a customer+ the 0Shi!!ed not illed1 account will be credited and the 0Cost of Goods Sold1 will be debited
Shipped not &illed" #ccount 28
Cost of Sales" #ccount
$o!ics •
Overview of costing and accounting-based CO-PA
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%ow costing-based CO-PA ties to the General Ledger
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&atching the cost-of-sales GL account to CO-PA
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Additional CO-PA reconciliation issues
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'e!osting documents in CO-PA onl#
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Summar# Start of first section: List the main points in your presentation and insert this slide at the start of each new topic. Move the highlighted box down for each new section. This divides your presentation into easy to follow sections.
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Stock $rans!ort Order .ariance Issue
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A Stock $rans!ort Order .ariance which is !osted using transaction .L@H< does not get !osted to CO-PA
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$his is because this transaction is !osted as a goods issue, Goods Issues do not !ass to CO-PA because the# are e*!ected to be billedE
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%owever+ S$Os are not billed+ so there is a discre!anc#
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6ou need to a!!l# SAP
CreditDebit &emos with no Inventor# Ad3ustments
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Some creditdebit memos relate to !rice ad3ustments aloneE
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%owever+ if #ou enter an inventor# material number in them the s#stem will determine their standard cost
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$his means that a cost will be transferred to CO-PA even though there has been no inventor# movement
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6ou ma# need to disable the .P'S condition for these t#!e of CreditDebit &emosE
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Alternativel#+ #ou can use a te*t material 7which does not have an# standard cost8
Cost )lement categor# for Sales Order Condition
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Sales conditions that are ma!!ed to value fields should be assigned to the a!!ro!riate GL Accounts
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$hese GL accounts are ma!!ed to sales conditions through the use of account ke#s
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$he GL Accounts should be set u! as cost elements with Cost )lement categor# or H
&aking Production .ariance Account a Cost )lement
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.ariances are !osted to CO-PA through the ma!!ing of variance categories to value fields
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A variance GL account is also !osted to at the same time 7configured in transaction O6C 9 $ransaction :e#> P'D-P'"8
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$his GL account should not be a cost element as this could lead to a double-!osting in CO-PA
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A negative sales condition 7i,e, deduction from 'evenue8 shows u! in CO-PA as a negative number
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%owever+ 'evenue shows u! in CO-PA as a !ositive number
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$his means that if #our CO-PA re!orts contain a formula that deducts discounts from Sales+ this will be a double negative 7hence an addition to sales8E
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If #ou therefore add these 7negative8 discounts to revenue+ be careful about "I generated discounts as the# a!!ear in COPA as !ositive amountsE
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$he recommendation is to use different value fields for Sales Condition Discounts which are negative and "I Generated discounts which are !ositive
/ork-in-!rocess account
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/IP account is !osted to when an incom!lete !roduction order s settled
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In the GL it is !osted to a balance sheet and a P5L account
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$he P5L Account is not to be set u! as a cost element
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CO-PA is not u!dated with /IP !ostings+ and hence there can be an imbalance with the General Ledger
Cost Center Allocations not full# Absorbed
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If #ou have created cost center assessments to CO-PA+ these need to be e*ecuted ever# month
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$his will ensure that all cost center costs eventuall# flow to COPA
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6ou need to check all the cost centers at month end to ensure that the# are (eroed out
Posting in CO-PA without corres!onding GL entr# •
COPA-onl# !ostings can be made using transaction :)H<
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%owever+ if these !ostings are made without a corres!onding "I entr#+ then this can lead to an imbalance
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$hese !ostings should onl# be used in emergenc# cases or when a reconciliation issue needs to be fi*ed
$o!ics •
Overview of costing and accounting-based CO-PA
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%ow costing-based CO-PA ties to the General Ledger
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&atching the cost-of-sales GL account to CO-PA
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Additional CO-PA reconciliation issues
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'e!osting documents in CO-PA onl#
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Summar# Start of first section: List the main points in your presentation and insert this slide at the start of each new topic. Move the highlighted box down for each new section. This divides your presentation into easy to follow sections.
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'easons for &aking &anual CO-PA Postings •
6ou can manuall# !ost documents to CO-PA onl# b# using transaction :)H<
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$his should onl# be used when it is too late to go back to the source module to make the !osting 7e,g, when the !eriod closing for that module has been carried out8
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&ake sure that onl# certain users have access to this transaction as it could lead to an imbalance with the general ledger if not used correctl#
&anual Posting to CO-PA 'nter a %ecord Type and !osting (ate in the initial screen
&anual Posting to CO-PA 7cont,8 'nter the relevant characteristics and value fields
'easons CO-PA ma# not be Originall# 4!dated
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CO-PA was not set u! when the finance !osting was made
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$he cost element that was linked to the condition t#!es account ke# was not set u! with Categor# or H
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$here was an incorrect ma!!ing of an SD condition t#!e to a CO-PA .alue field
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A technical s#stem error occurred which did not com!lete the documents !osting to CO-PA
Subse2uent CO-PA Posting
Choose business transaction and document origin
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)ou can restrict the selection by document number* document* posting date or creation date
Subse2uent CO-PA Posting 7cont,8 •
6ou can also subse2uentl# re!ost documents that originated from the Sales and Distribution and &aterials &anagement modules b# using transaction :)S and :)S&& res!ectivel#
'easons for 'eversing CO-PA Documents •
6ou made the initial !osting b# using the CO-PA document transaction :)H<
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6ou made a CO-PA configuration change but it is too late to reverse the source document+ hence #ou need to cancel and re!ost the CO-PA document alone
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$here is an e*ternal interface that was !osted incorrectl# into CO-PA and needs to be corrected in SAP onl#
Dis!la#ing CO-PA Documents to be Deleted •
6ou need to be s!ecific about the data that #ou want to delete otherwise #ou could delete a CO-PA document inadvertentl#
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It is therefore advisable to dis!la# the CO-PA documents first before carr#ing out the reversal
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6ou can use transaction :)H to dis!la# the CO-PA documents,
4sing $ransaction :)S@@ •
&inimum data that needs to be entered> •
O!erating Concern
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'ecord $#!e
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Com!an# Code
4sing $ransaction :)S@@ 7cont,8 •
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/hen #ou e*ecute the transaction #ou will get a log of the line items read and cancelled>
Double-click on the relevant line to see the document numbers that have been read or cancelled
$o!ics •
Overview of costing and accounting-based CO-PA
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%ow costing-based CO-PA ties to the General Ledger
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&atching the cost-of-sales GL account to CO-PA
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Additional CO-PA reconciliation issues
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'e!osting documents in CO-PA onl#
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Summar# Start of first section: List the main points in your presentation and insert this slide at the start of each new topic. Move the highlighted box down for each new section. This divides your presentation into easy to follow sections.
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'esources •
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Paul Ovigele+ @@ $hings 6ou Should :now About "inancial Accounting with SAP 7Mul# H@8 • Provides little-known ti!s to o!timi(e the "inancial Accounting module+ including reconciling the general ledger cost of sales account with CO-PA htt!>hel!,sa!,comsa!hel!Ner!@Ns!hel!dataenJacBca @dB;c@@@@eBH;fbbdframeset,htmSAP • SAP %el! website contains com!rehensive information about the CO-PA module including the various data flows from the other modules such as the general ledger
"ive :e# Ideas
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Costing-based CO-PA is more effective than Account-based COPA for cost of sales and variance anal#sis but is more difficult to reconcile to the general ledger
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Data flows into CO-PA from billing documents+ general ledger and inventor# !ostings+ !roduction order and !ro3ect s#stems settlements+ cost com!onents and cost center assessments
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Cost of sales are !osted to the general ledger when the goods are issued+ but !osted to CO-PA when a billing document is created
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A cost element that is linked to a sales condition which !osts to CO-PA should have a cost element categor# of 01 or 0H1
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6ou can !ost documents to CO-PA onl# using transaction :)H<
